Value of whole home solar PV system

[Mike Ciaccio]

Florida...My subject has a new whole home solar PV system which was not known until the inspection. Client/Lender did not request a Green certified appraiser. Information on determining value is scant, unless you are a AI member and take their courses and earn their Green designation.

2860 sq. ft home
9.8 kW rated system (35 x 250w panels)
pvwatts.nrel.gov calculator estimates system output 14,700 kWh/year.

System is currently offsetting a $500/month energy bill, panels are owned (financed over 20 years).

Now what?? Thanks in advance...

 

[Mike Ciaccio]

Found a 1-hour McKissock webinar: Appraising Solar Panels- A Primer

 

[Tim The Enchanter]

It's easier when they are leased, then they are personal property, no value for the appraisal.

If owned I have been calling it a feature or selling point and making no adjustment. Have not had any push back so far, but have only done a few of them.

 

[Mike Ciaccio]

Thanks for the reply...waiting for someone to say "paired sales"

 

[DWiley]

$500 per month would be significant in most markets. We have you considered withdrawing, based on the Competency Rule?

 

[Mike Ciaccio]

$500 per month would be significant in most markets. We have you considered withdrawing, based on the Competency Rule?

Yeah i KNOW ITS SIGNIFICANT, THANKS FOR THAT!!! WHAT AMAZING INSIGHT!!! SO HELPFUL!!!

I HAVE BEEN WAITING FOR SOME ONE TO COME ALONG AND SAY THAT. WTF IS THE POINT OF THE FORUM THEN?! WHY DO YOU TROLL FORUMS ANSWERING POSTS WITH THE SAME BS NON-ANSWER?!?! DO YOU NOT SEE THE PARADOX?

 

[Tim Hicks (Texas)]

Do they have a electric company for when it does not offset the $500 energy bill? Does this company have a minimum monthly bill? Does it offset the energy bill during the winter months? These are questions you need to consider. I have found home owners upset that it does not cover their energy costs in a 1-5 months out of the year. Also, the cost of the system is basically just prepaying your electric bill for several years until it actually offsets the investment. Are electric bills really that high there? My house is larger and never exceeds $250 here in this sweltering heat.

 

[TJSum]

If they are financed for 20 years, with payments transferring to a new owner, I would not call that "owned" in the same way that fully paid off systems are. When did the 20 years start, how long ago?

 

[Mike Ciaccio]

Do they have a electric company for when it does not offset the $500 energy bill? Does this company have a minimum monthly bill? Does it offset the energy bill during the winter months? These are questions you need to consider. I have found home owners upset that it does not cover their energy costs in a 1-5 months out of the year. Also, the cost of the system is basically just prepaying your electric bill for several years until it actually offsets the investment. Are electric bills really that high there? My house is larger and never exceeds $250 here in this sweltering heat.

This is a rather new booming trend, so its worth figuring out now. Its sunny central FL, 2-story 2,650sf home with dual zoned AC systems and a large salt water pool, so yes, I can believe the bill was that high in June.

 

[djd09]

in ohio panels are like an unicorn, so the value is near zero if lucky.